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Issues involved: Appeal against suspension of CHA license u/s Regulation 20(2) of CHA Licensing Regulations, 2004 due to alleged illegal activities prejudicial to Revenue's interests.
Summary: 1. The appeal challenged the suspension of the CHA license by the Commissioner based on alleged illegal activities of diverting imported goods for sale without manufacturing, implicating the CHA and its director. 2. The investigation revealed that the CHA was involved in diverting goods meant for manufacturing to the local market, with the director actively participating in high seas sales and transportation, violating CHA Licensing Regulations. 3. After adjudication imposing penalties on the CHA and its director, the suspension order was issued, leading to the appeal against the suspension despite the events occurring in 2005. 4. Both sides presented their arguments before the Tribunal regarding the involvement of the CHA and its director in the fraudulent activities. 5. The advocate for the appellants argued that the penalties should be set aside as the CHA's actions did not knowingly abet the diversion of goods, citing precedents and statutory interpretation principles. 6. Referring to legal decisions, the advocate contended that the suspension was not justified as there was no emergent situation requiring immediate action, and the CHA firm should not be penalized for the actions of one director. 7. The Departmental Representative cited legal precedents supporting the immediate suspension of the CHA license during investigations, emphasizing the need for timely action despite the passage of time. 8. The Tribunal upheld the suspension of the CHA license based on the adjudication order confirming the CHA's involvement in illegal activities, leading to the imposition of penalties and the necessity for immediate suspension to prevent further violations. Decision: The Tribunal rejected the appeal, affirming the suspension of the CHA license due to the proven involvement of the CHA and its director in illegal activities, despite the delay in taking action, as an emergent situation was deemed to exist based on the confirmed charges.
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